Trust allow you to appoint a person or persons (known as your Trustees) to manage your assets for the benefit of particular persons (known as the Beneficiaries).
Setting up a Trust is a useful way to assist with your tax planning and preserve your assets. There are different types of Trusts that can be set up during your lifetime on in your Will.
There are a number of reasons that you may want to consider creating a Trust:
- To provide for young children or grandchildren.
- To provide for a vulnerable or disabled loved one.
- If you are worried that your loved one may misuse their inheritance.
- To protect wealth for future generations and prevent it from being dispersed.
- If you wish to provide for a loved one but are concerned that their situation is unsettled at the moment due to divorce, money problems or business difficulties.
- To provide for a loved one during their lifetime but control who the money should pass to on their death. For example you may want to provide for your spouse during their lifetime but ultimately pass your wealth to your children from a previous relationship.
- To protect your assets from being used for future care fees.
- To reduce your estate for Inheritance Tax purposes but still retain some control over the assets as a Trustee.
- If you have received a compensation payment for example as a result of a personal injury claim and you wish to ensure that your entitlement to means tested benefits are not affected.
- To write a life insurance policy into Trust to prevent it forming part of your estate for Inheritance Tax.
Our team at Vale Wills Ltd are experts in Trust law and can guide you through the process to ensure you receive the specialist advice needed to create a Trust that is appropriate for your circumstances.